No. That is, if you are a shareholder of a closely-held company or business you do not need the physical stock certificate to enforce your rights as a shareholder. New York law specifically addresses this point and NY Business Corporation Law Section 504(i), states:
When consideration is paid and shares of stock are purchased, the purchaser “…shall be entitled to all the rights and privileges of a holder of such shares and to a certificate representing his shares…”
So, provided that you pay for your stock and equity interest, the failure of your “partners” to actually issue a physical certificate to you will not ordinarily defeat your rights as an owner.
Category: Partnership Disputes
With services to make your growth strategy simple, cost effective, and with a team excited to help you, let’s talk about how we can help grow your business.
Fill out the following form and we’ll contact you as soon as possible. To reach our team directly, give us a call at (800) 976-4904.
An attorney client relationship is not established by submitting this initial contact information.